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Market Planning - Marketing Audit
Transcript of Market Planning - Marketing Audit
MATERIALS (Factors of Production) Marketing Audit External Internal (cc) photo by theaucitron on Flickr What is a Marketing Audit? Market Plan Internal Marketing Environment A Review of Current Marketing Plan The External Marketing Environment What resources do we have at hand?
How effective is our market team?
Do we have market intelligence?
What is the state of our 5 P's? What is the nature of our 'customer?'
What is the nature of competition in our target markets?
What is the cultural nature of the environment(s)?
What is the demography of our consumers? Such as average age, levels of population, gender make up, and so on. How does technology play a part?
What is the economic condition of our markets?
Is the political and legal landscape changing in any way? What are our current objectives for marketing?
What are our current marketing strategies?
How do we apply the marketing mix?
Is the marketing process being controlled effectively?
Are we achieving our marketing budget?
Are we realising our SMART objectives?
Are our marketing team implementing the marketing plan effectively? http://prezi.com/jwrnwfiy6um0/copy-of-steve-nash-fitness-club-marketing-audit SWOT Analysis Simple rules for successful SWOT analysis:
Be realistic about the strengths and weaknesses of your organization when conducting SWOT analysis.
SWOT analysis should distinguish between where your organization is today, and where it could be in the future.
SWOT should always be specific. Avoid grey areas.
Always apply SWOT in relation to your competition i.e. better than or worse than your competition.
Keep your SWOT short and simple. Avoid complexity and over analysis
SWOT is subjective. leading global brand for online auctions
used by more than 100 million people
brand has grown tremendously
strong customer relationships
buyers and sellers leave feedback for each other
awards are given to the most genuine
Today it is common to hear that someone is 'ebaying' or is an 'eBayer,' or that someone is going 'to eBay.' Acquisitions provide new business strategy opportunities
eBay has agreed to buy Skype
eBay has been buying up firms - including payment system PayPal - in an effort to increase the number of services it offers to consumers and keep its profits growing
New and emerging markets provide opportunities (China/India)
Western Europe and the USA still have many potential consumers that have yet to discover the benefits of online auctions model does leave itself open to a number of fraudulent activities (i.e. counterfeit goods, redistribution of stolen goods) from users exploiting the C2C business model
systems breakdowns could disturb the trading activities of eBay
both eBay and its payment brand Paypal have encountered shutdowns and outages. International competitors competing in their domestic markets may have the cultural experience that could give them a competitive advantage over eBay. (Yahoo! dominates the Japanese market)
Attack by illegal practices is a threat (as with weaknesses above) i.e fake e-mails from eBay
Some costs cannot be controlled by eBay, which can make the overall cost of an auction item to expensive (i.e. fuel rise = higher shipping costs, or rises in credit card transaction costs Branding - automobiles such as Chevrolet, Pontiac Cadillac and Buick have become household and the General Motors Brand is well rooted not only in America but throughout the world
Worldwide Presence - General Motors truly has an international presence with factories in Poland, Russia, South Africa Ecuador, Egypt, Germany, Argentina, Australia, Belgium, Brazil, China, Colombia, South Korea, Spain, Sweden, and Thailand. The company is even in Viet Nam. In addition, it also has assembly, manufacturing, distribution, office and warehousing operations in 55 other countries. Diminishing Dealer Network - General Motors has closed more than 1,000 dealerships
Insufficient Liquidity - due to lower sales volumes, research and development, as well as relationships with suppliers are negatively affected by the reduced liquidity
Inadequate Performance among Some Business Segments
Low Debt Ratings - Four independent credit rating agencies assess GMs debt ratings and ability to pay interest, dividends and principal on securities. Moodys Investor Service, Fitch Ratings DBRS and Standard & Poors evaluate GM Growth Potential in India and China
Increased Global Truck Market
Rising Demand for Hybrid Vehicles - General Motors produces six hybrid models in the US including the Saturn Vue and Aura Hybrids, Chevrolet Malibu and Tahoe Hybrids, GMC Yukon Hybrid as well as a Cadillac Escalade Hybrid The Continuing Global Recession
Weakness in Global Automobile Industry - Consumer Requirements for commercial vehicles declined in the NAFTA region, Western Europe and Japan.
Intense competition - competition from companies like Volvo, Daimler, Fiat, Ford, Honda, Nissan, Peugeot Citroen, Renault, Toyota, and Volkswagen. Many have responded to the crises by adding vehicle enhancements, providing subsidized financing or leasing programs in order to sell more vehicles. They are also offering option package discounts, other marketing incentives and are reducing vehicle prices in certain markets. recognized, trusted, global brand for +90 years
premium quality latex
T30 varieties to suit the needs of every target consumer
electronically tested to help ensure reliability
70% market share world wide;
increasing consumer awareness of risks of sex has led to an increase in the use of the product
relatively easy to obtain and inexpensive compared to other forms of birth control
channels of distribution have been created to have an effective line of communication with prospective buyers (doctors, clinics, advocacy groups) capital investments are high while the variable costs are too low, making it a high volume, low cost business.
Establishing the brand image in countries that do not allow birth control products in advertisements can be a challenge
Some consumers find the product unpleasant and may not use it
Condoms are not 100% effective and can break
Trojan cannot advertise on certain platforms and they are restricted to only advertising on TV late at night.
Trojan Condoms, are known worldwide, but are not the dominant condom used in most foreign countries. can aid the global community by increasing sales throughout Africa and reducing the spread of AIDS
Expansion of product line and brands, expand into a non-profit segment
Increasing use of condoms in India and South Korea, makes them attractive markets
Products can be sold in multiple outlets: home delivery, online, hospitals, supermarkets, medical facilities, free clinics, hotels, club bathrooms There may be religious, cultural and social restrictions among certain groups that object to utilizing birth control methods.
Trade restrictions, and the costs of obtaining certifications and establishing sales locations in some countries can be excessively high.
There are several substitutions for condoms, such as birth control pills, sterilization and IUD's.
The education level and attitude of the consumer can lead them to avoid using the product, especially among high risk groups such as teenagers. Fundamentals What resources do we have?
(i.e. The FIVE 'M's) Distinct Competence (Organizational Audit) How Effective is our Marketing? How is our marketing team organised?
How efficient is our marketing team?
How effective is our marketing team?
How does our marketing team interface with other organisations and internal functions?
How effective are we at Customer Relationship Management (CRM)?
What is the state of our marketing planning process?
Is our marketing planning information current and accurate? Don't Forget the P's! What is the current state of New Product Development? (Product)
How profitable is our product portfolio? (Product)
Are we pricing in the right way? (Price)
How effective and efficient is distribution? (Place)
Are we getting our marketing communications right? (Promotion)
Do we have the right people facing our customers? (People)
How effective are our customer facing processes? (Process)
What is the state of our business's physical evidence? (Physical Evidence) (Environmental Analysis) Macro Environment Woolworth’s is the largest and most successful retail store in Australia and New Zealand
offers high quality and trusted brands, in food, grocery, liquor, petrol, electronic and other general merchandize
87 years old in the business and employs more than 191,000 employees
served the communities in Australia and New Zealand economically through creation of jobs and increase in shareholders wealth, investment in infrastructure and stimulated the growth of the manufacturing and agricultural production
The success of Woolworth as a number 1 retailing company in New Zealand and Australia can be traced to its significantly positive macro-economic environment: political, economic, socio-cultural and technological factors. Woolworth benefits from the Australia-New Zealand Closer Economic Relations Trade Agreement (ANZCERTA)
This trading cooperation brings the two countries where Woolworth is operating into a single economy.
Woolworth and its shareholders (foreign and domestic) are also secure in the political stability of both countries. I
n 2011, Australia ranked 3rd and New Zealand 5th in “IMD World Competitiveness Yearbook” Political Woolworth operates in an economically sound environment.
Australia and New Zealand have a relatively high standard of living compared to the rest of the world.
GDP per capita at purchasing power parity of Australia ($39,699) is ranked number 10 and New Zealand ($29,966) number 32 based on the 2010 estimates by the International Monetary Fund. Economic Woolworth is along the trend for a green lifestyle and sustainable corporate practices with its “sustainability strategy 2007-15”.
Investors and customers alike who are aware of the environmental impacts of their investing and consuming behavior choose a company with a green-tag and buy and patronize products that are organic.
Further Woolworth also addresses the needs of customers with very little time for shopping with their convenient and efficient services as discussed in the next factor. Social Woolworth harnessed the innovations of information communication technology to improve the efficiency of their service and satisfy their customers.
In 2008 it introduced the self-checkout machines that enable the customer to “scan, weigh and pay for their groceries via cash, credit or debit cards”.
They also employed the SOA (Service Oriented Architecture) software that monitors its business activity, identify bottlenecks of their service in real time and reduce costs.
Recently they introduced the Visa’s payWave to reduce waiting time of customers spent in checkout queues. Technological Micro Environment Here you assess how easy it is for suppliers to drive up prices. This is driven by the number of suppliers of each key input, the uniqueness of their product or service, their strength and control over you, the cost of switching from one to another, and so on. The fewer the supplier choices you have, and the more you need suppliers' help, the more powerful your suppliers are. Here you ask yourself how easy it is for buyers to drive prices down. Again, this is driven by the number of buyers, the importance of each individual buyer to your business, the cost to them of switching from your products and services to those of someone else, and so on. If you deal with few, powerful buyers, then they are often able to dictate terms to you. This is affected by the ability of your customers to find a different way of doing what you do – for example, if you supply a unique software product that automates an important process, people may substitute by doing the process manually or by outsourcing it. If substitution is easy and substitution is viable, then this weakens your power. Power is also affected by the ability of people to enter your market. If it costs little in time or money to enter your market and compete effectively, if there are few economies of scale in place, or if you have little protection for your key technologies, then new competitors can quickly enter your market and weaken your position. If you have strong and durable barriers to entry, then you can preserve a favorable position and take fair advantage of it. What is important here is the number and capability of your competitors. If you have many competitors, and they offer equally attractive products and services, then you'll most likely have little power in the situation, because suppliers and buyers will go elsewhere if they don't get a good deal from you. On the other hand, if no-one else can do what you do, then you can often have tremendous strength. The analysis above indicates that the industry is moderately favorable to profitability.
However, in another analysis of the industry, based upon industry-specific news and facts surrounding the suppliers, buyers, competitors, and more, the results are very different. This is not based on the tallied results in the appendix: According to this second analysis, the threats of substitute products, bargaining power of customers, and rivalry among competing firms are high, and are unfavorable to industry profitability.
The bargaining power of suppliers and threat of new entrants are moderate, which is not very favorable to industry profitability. It should be noted, however, that the bargaining power of suppliers may be induced upon them by force, as if they stop supplying it is not because they have money and are threatening the automakers, but because they cannot afford to keep assembly lines open. This creates a negative-sum game, hurting both parties. It could force the automakers to rescue the suppliers.
In summary, the industry is unfavorable to profitability. Barriers to Entry In the book "Competitive Strategy: Techniques for Analyzing Industries and Competitors," Michael E. Porter identified six major sources of barriers to market entry Economies of scale occur when the unit cost of a product declines as production volume increases.
When existing competitors in an industry have achieved economies of scale, it acts as a barrier by forcing new entrants to either compete on a large scale or accept a cost disadvantage in order to compete on a small scale.
There are also a number of other cost advantages held by existing competitors that act as barriers to market entry when they cannot be duplicated by new entrants—such as proprietary technology, favorable locations, government subsidies, good access to raw materials, and experience and learning curves. Economies of Scale In many markets and industries, established competitors have gained customer loyalty and brand identification through their long-standing advertising and customer service efforts.
This creates a barrier to market entry by forcing new entrants to spend time and money to differentiate their products in the marketplace and overcome these loyalties. Product Differentiation Another type of barrier to market entry occurs when new entrants are required to invest large financial resources in order to compete in an industry.
For example, certain industries may require capital investments in inventories or production facilities.
Capital requirements form a particularly strong barrier when the capital is required for risky investments like research and development. Capital Requirements Switching Costs A switching cost refers to a one-time cost that is incurred by a buyer as a result of switching from one supplier's product to another's.
Some examples of switching costs include retraining employees, purchasing support equipment, enlisting technical assistance, and redesigning products.
High switching costs form an effective entry barrier by forcing new entrants to provide potential customers with incentives to adopt their products. Access to Channels of Distribution In many industries, established competitors control the logical channels of distribution through long-standing relationships.
In order to persuade distribution channels to accept a new product, new entrants often must provide incentives in the form of price discounts, promotions, and cooperative advertising.
Such expenditures act as a barrier by reducing the profitability of new entrants. Government policy Government policies can limit or prevent new competitors from entering industries through licensing requirements, limits on access to raw materials, pollution standards, product testing regulations, etc. The political arena has a huge influence upon the regulation of businesses, and the spending power of consumers and other businesses. You must consider issues such as:
1. How stable is the political environment?
2. Will government policy influence laws that regulate or tax your business?
3. What is the government's position on marketing ethics?
4. What is the government's policy on the economy?
5. Does the government have a view on culture and religion?
6. Is the government involved in trading agreements such as EU, NAFTA, ASEAN, or others? Marketers need to consider the state of a trading economy in the short and long-terms. This is especially true when planning for international marketing. You need to look at:
1. Interest rates.
2. The level of inflation Employment level per capita.
3. Long-term prospects for the economy Gross Domestic Product (GDP) per capita, and so on. The social and cultural influences on business vary from country to country. It is very important that such factors are considered. Factors include:
1.What is the dominant religion?
2.What are attitudes to foreign products and services?
3.Does language impact upon the diffusion of products onto markets?
4.How much time do consumers have for leisure?
5.What are the roles of men and women within society?
6.How long are the population living? Are the older generations wealthy?
7.Do the population have a strong/weak opinion on green issues? Technology is vital for competitive advantage, and is a major driver of globalization. Consider the following points:
1. Does technology allow for products and services to be made more cheaply and to a better standard of quality?
2.Do the technologies offer consumers and businesses more innovative products and services such as Internet banking, new generation mobile telephones, etc?
3.How is distribution changed by new technologies e.g. books via the Internet, flight tickets, auctions, etc?
4.Does technology offer companies a new way to communicate with consumers e.g. banners, Customer Relationship Management (CRM), etc?